Wave Analysis:
The GBP/USD pair started the Friday session with a rally until the publication of Ben Bernanke’s speech, having added about 120 points after that coming closer to 59 figure. After that the pair rebounded from this high which can be a sign (together with MACD indicator) that the second try to test 1.5900 level may result into market swing against the British pound in short term.
Target for Down Wave (probably 3 or c):
1.5858 – 23.6% Fibonacci
1.5823 – 38.2% Fibonacci
1.5795 – 50.0% Fibonacci
Targets for Correctional Up-wave (probably 2 or b, it is possible that it has already come to an end):
1.5886 – 11.4% Fibonacci
Summary and Trading Recommendations:
It is possible that now the pair continues its downtrend. The intermediate targets of the suggested decline are the levels of 1.5858, 1.5823, and 1.5795 which corresponds to 23.6%, 38.2%, and 50.0% of Fibonacci in the terms of wave 3 or c. Until that we can see a re3bound in the terms of wave 2 or b (not necessary) to the level of 1.5886 and higher which is equal to 11.4% of Fibonacci. But it is most likely that the wave has already finished its formation. It should be noticed that ambiguousness of wave marking may result in its reconsideration. The uptrend channel still indicates the upward area, in case the price is below it, we will get a confirmation that the new downtrend , in particular wave 3 or c, is formed.
